Tunisian President Ben Ali at bedside of Mohamed Bouazizi, who set himself on fire over his economic situation, in December 2010
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President Morsi's office had said that would not challenge the verdict.
A judicial official said the High Administrative Court will rule on the appeal on Sunday.
Last week the lower court ruled that the law governing the elections was illegal and that its passage by the upper house of Parliament was procedurally improper.
Palestinians claim the land belongs to them.
The case is seen by some as a bellwether of the Israeli Government's plans to support Jewish settlements in the controversial E1 area near Jerusalem. Palestinians claim this would effectively cut off access from one part of the West Bank to another.